Market Watch: Dow futures contract increased by 135 points, S&P 500 futures rose 17 points, and Nasdaq 100 futures rose 88 points.
Wall Street is expected to start the week positively, with investors analyzing Trump’s life attempt implications, corporate earnings from Goldman Sachs, and Fed Chair Jerome Powell’s comments.
Trump is set to receive the Republican nomination
Former President Donald Trump is set to receive the Republican nomination at the 2024 Republican National Convention in Milwaukee.
The shooting may have increased Trump’s chances of victory over President Joe Biden.
The assassination attempt has lowered pressure on Democrats for Biden to step aside amid concerns about his fitness for office. Both leaders have urged calm amid growing political divide.
Goldman Sachs leads earnings week
Goldman Sachs leads earnings week in the U.S., following strong performance from Citigroup and JPMorgan.
Expectations are high due to growth in investment banking revenues, despite Wells Fargo’s decline in net interest income.
Other investors include Bank of America, Morgan Stanley, and Netflix.
China’s economic growth slowed
China’s economic growth slowed in Q2, with a 4.7% growth in April-June, the weakest since Q1 2023.
Industrial output rose 5.3% in June, while retail sales rose 2.0%.
This weakening economy puts the focus on China’s third plenum, a five-year event, with expectations of more stimulus to support the economy.
Economic Calendar
- 8:30Â AMÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Empire Manufacturing for July
- 12:00 PM              Fed’s Powell Interviewed by David Rubenstein
- 4:35 PM                Fed’s Daly Speaks in Q&A on Economy, Tech
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Recent data indicating a possible cooling in the U.S. economy have alleviated some persistent inflation concerns, fueling hopes that the Federal Reserve will start to bring interest rates down from more than two-decade highs as soon as September. Along with the Dow, the benchmark and tech-heavytouched record marks last week.
The durability of the strength on Wall Street will likely be tested by a fresh batch of corporate results this week, including quarterly returns from artificial intelligence darling Nvidia (see below). Durable goods and consumer sentiment data will also be in focus as markets hunt for more evidence that growth is moderating enough to give the Fed justification for rolling out rate cuts this year.
Recent data indicating a possible cooling in the U.S. economy have alleviated some persistent inflation concerns, fueling hopes that the Federal Reserve will start to bring interest rates down from more than two-decade highs as soon as September. Along with the Dow,
The durability of the strength on Wall Street will likely be tested by a fresh batch of corporate results this week, including quarterly returns from artificial intelligence darling Nvidia (see below). Durable goods and consumer sentiment data will also be in focus as markets hunt for more evidence that growth is moderating enough to give the Fed justification for rolling out rate cuts this year.
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MFitch Ratings has downgraded China’s credit rating outlook to “Negative” from “Stable” due to concerns over growing public debt and slowing growth in the world’s second-largest economy. The agency affirmed China’s rating at A+, citing increasing risks to China’s public finance outlook. Concerns over slowing economic growth have grown in recent months, with Fitch expecting gross domestic product growth to fall to 4.5% in 2024.
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U.S. inflation data for February is expected to provide insights into the future direction of Federal Reserve monetary policy. The overall consumer price index (CPI) is expected to match the previous month’s pace of 3.1% annually, with the core CPI expected to slow to 3.7% from 3.9% in January. However, the month-on-month gauge is expected to shed light on price gains momentum.
Fed officials have made cooling inflation the main objective of interest rate hikes, which have brought borrowing costs to over two-decade highs. They suggest cuts may be coming later this year, but need more evidence that price growth is sustainablely easing back down to their 2% annualized target. Analysts at ING believe inflation is likely too hot for comfort.
U.S. inflation data for February is expected to provide insights into the future direction of Federal Reserve monetary policy. The overall consumer price index (CPI) is expected to match the previous month’s pace of 3.1% annually, with the core CPI expected to slow to 3.7% from 3.9% in January. However, the month-on-month gauge is expected to shed light on price gains momentum.
Fed officials have made cooling inflation the main objective of interest rate hikes, which have brought borrowing costs to over two-decade highs. They suggest cuts may be coming later this year, but need more evidence that price growth is sustainablely easing back down to their 2% annualized target. Analysts at ING believe inflation is likely too hot for comfort.